Daniel Loeb’s Third Point LLC Raised $2.5 Billion In Two Weeks — Sources

Juliet Chung and David Benoit broke the news that New York hedge-fund manager Daniel Loeb had raised $2.5 billion in just two weeks, one of the largest sums a hedge fund has amassed so quickly. Demand for Third Point, which returned more than $1 billion to investors recently, likely contributed to the interest, according to sources. The new funds will be used to buy stakes in several large-cap companies in the U.S. and abroad, the sources said.

The story as it appeared on Dow Jones:
Sept. 11, 2014, 1:48 PM EDT: Daniel Loeb’s Third Point LLC Raised $2.5 Billion In Two Weeks — Sources

1:48 PM EDT: Third Point Plans To Use Funds On More Activist Situations — Sources

1:48 PM EDT: Third Point Focusing On Large Companies In U.S. And Abroad — Sources

New York hedge-fund manager Daniel Loeb has raised a $2.5 billion war chest to spend on several new activist situations, potentially by the end of the year, according to people familiar with the matter.

Mr. Loeb’s Third Point LLC raised the money over about two weeks this summer, the people said. The amount is one of the largest sums a hedge fund has amassed so quickly, according to fund experts.

Pent-up demand for Third Point, which returned more than $1 billion to investors recently, likely contributed to the interest, some of the people said, but the hefty raise also illustrates investors’ continued appetite for exposure to activists, who have produced some of the strongest returns by hedge funds this year.

For the year through August, Third Point’s flagship fund was up 6.4% after fees, including a 1.7% gain in August, outpacing the 4.1% average return by rival event-driven funds, according to research-firm HFR. The fund has returned 21.1% a year, on average, since inception.

Third Point plans to use the new funds to buy stakes in several large-cap companies in the U.S. and abroad, people familiar with the matter said. It was unclear Thursday which companies Third Point has homed in on and whether the hedge fund already has stakes in them.

Write to Juliet Chung at juliet.chung@wsj.com and David Benoit at david.benoit@wsj.com

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